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AS 2
Accountancy
If we own a factory, should we include a portion of amount as rent in cost of conversion?
Answers (4)
Thread Starter
Prakhash RamIf we bought it for a loan?
Indirect borrowing costs are not allowed to be inventorised? refer para 12 of AS 2 Interest and other borrowing costs are usually considered as not relating to bringing the inventories to their present location and condition and are, therefore, usually not included in the cost of inventories.
Sriram Somayajula Admin
Indirect borrowing costs are not allowed to be inventorised? refer para 12 of AS 2 Interest and other borrowing costs are usually considered as not relating to bringing the inventories to their present location and condition and are, therefore, usually not included in the cost of inventories.
And notion costs / notional rents are not allowed to be added to cost of conversion
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